ITI Funds and secured-storage and crypto-asset management solutions provider Cracc have formed a strategic partnership to develop a product enabling private and institutional investors to invest in digital assets safely and in accordance with regulatory requirements.
Within the partnership:
ITI Funds will commence multi-party work with crypto accounts for institutional investors in accordance with international regulatory requirements;
Cracc will provide a multi-signature solution for ITI Funds crypto platform users, giving asset managers, administrators, and investors comprehensive control over their transactions.
Also in the pipeline is a unified software environment and integration with other ITI Funds crypto platform services, including: quick access to crypto-exchanges; crypto-custody; asset insurance; automated accounting of crypto-funds; legal support; compliance tools; and administration of crypto-funds including a multi-signature option.
ITI Funds has taken a share in Cracc’s capital as part of the current seed-round of financing.
ITI Funds’ crypto platform was launched in early 2019 (the company itself operates since 2014), and its AUM now exceeds US$80 mn. It offers investors access to several product types, including Europe’s first cryptocurrency index fund with professional custody and insurance. The fund was established in accordance with Luxembourg law, and tracks the ITI Funds Crypto Index, which comprises nine coins (with possible extension to 30). Its YTD actual return is over 90%.
Cracc CEO Alexander Kuroglo commented that “The digital-asset market is only starting to emerge, and we know that it has huge potential. This new asset class needs to be adapted to meet both regulatory and security standards to allow institutional investors to work freely with this market. Via our partnership with ITI Funds, we are creating a unique product to make digital assets accessible to all types of institutional investor”.
ITI Funds CEO Gleb Yakovlev said that “When working with crypto-assets, traditional investors and portfolio managers face risks specific to the cryptocurrency market – hacking, loss of private keys, and transfers to incorrect addresses. Blockchain technology does not allow such transactions to be cancelled, making it impossible to return the lost funds. Cracc’s solution, incorporated into ITI Funds’ crypto platform, will allow administrators and portfolio managers to reduce such risks, ensuring investors’ funds are secure. This solution will be applied to funds already operating on the platform, and will be available to all portfolio managers in the near future”.
ITI Funds is a subsidiary of Da Vinci Capital, and serves as a fund platform combining the interests of investors and portfolio managers. It provides portfolio managers with the infrastructure to establish funds quickly and reduce operating costs, and offers a range of products to private and institutional investors. More than 10 funds currently run on the ITI Funds platform, including traditional ETFs, private-equity funds, a distressed-assets fund, and a cryptocurrency index fund.
Cracc is a Skolkovo resident and provides businesses with safe-storage and crypto-asset management solutions. These include: multi-signature access; private keys; cold storage and HSM; business-process construction including multi-user operation confirmation; rights and roles configuration; and access recovery.